labels: economy - general
Government issues fresh pre-qualification norms for PPP projectsnews
25 May 2007

Mumbai: The government has issued fresh norms for pre-qualification of private bidders for public-private partnership in the infrastructure sector.

The guidelines, released by planning commission deputy chairman Montek Singh Ahluwalia, aims at ensuring that only the best get to develop the core sector projects.

The revisions were necessitated by considerable divergence in the principles and practices followed for selection of bidders in different sectors, Ahluwalia said while releasing the guidelines.

The revised norms take stock of the fact that a bidder lacking in sufficient technology and financial capacity could jeopardise the project and compromise on the services that government is committed to providing.

On the other hand, a selection based on inadequate competition could cost the public and the exchequer more than they are required to shell out.

The qualifying process would comprise two stages. The first stage of request for qualification would shortlist applicants while under the second stage short-listed applicants would submit financial offers.

The committee on infrastructure had set up an inter-ministerial group, headed by the secretary, department of expenditure, to finalise the rules for pre-qualification and shortlisting of applicants.

The group held extensive consultations with stakeholders and experts before submitting its recommendations that were subsequently accepted by the committee.

The guidelines for pre-qualification of bidders for PPP projects have since been issued by the finance ministry.

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Government issues fresh pre-qualification norms for PPP projects